Dogecoin (DOGE) Trading Volume Plunges – Here’s Why

Christian Encila

3 years ago

3 mins read

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With a bearish market, the canine-themed meme coin Dogecoin suffered a major decline in trading volume. Investor interest also dramatically waned starting December 2021.

Further, there was a huge 66% slump in trading volume from January to March of 2021. Things got even worse in February when Russia invaded Ukraine.

Suggested Reading | Dogecoin (DOGE) Jumps 30% After Elon Musk Buys Twitter

DOGE Slumps from 2021

In January this year, Dogecoin’s trading volume was at $33.51 billion. Comparatively, the trading volume in February 2022 dropped further to $22.44 billion.

The trading price of Dogecoin started at $0.1705 on January 1 and this closed Q1 at $0.1378. That is a nearly 20% drop between DOGE’s opening and closing price in the first quarter. Today, the DOGE price has dropped by 3.1% with a trading volume of $0.13569.

DOGE is now ranked 11th among the top 20 cryptocurrencies, with a market cap of $18 billion. (Image credit: The Scotsman)

When the Bitcoin price declines (BTC is down at 4.4% today), its peers or other altcoins also suffer a major drop. Call it a domino effect of sorts. Bitcoin along with other crypto tokens are down for quite some time as investors are feeling the agitation with the tightening plans by the U.S. Federal Reserve.

Dogecoin – The Strongest Meme Coin

Dogecoin was one of the strongest cryptocurrencies last year recording an all-time high and shooting up at $0.7376 in May 2021. DOGE is on the top 20 cryptocurrencies to date or at the 11th spot with a market cap ticking at $18 billion.

With the support of Tesla CEO Elon Musk and billionaire entrepreneur Mark Cuban, Dogecoin is definitely not running out of gas in terms of popularity, market cap, and supply. However, DOGE’s unlimited supply also happens to be its Achilles’ heel because of inflation issues.

DOGE total market cap at $20.10 billion on the weekend chart | Source: TradingView.com

The bearish pressure has pressed on the DOGE price putting it way below the critical level or at $0.12. This price behavior happens when it moves fast as it runs on empty. This could trigger a flash crash that could go below the $0.09 level.

DOGE’s Bullish Reversal

However, this disequilibrium or great disruption can mean one thing. DOGE could be up to a higher reversion. And Musk becoming the new owner of Twitter could turn things around for the most popular meme-inspired coin.

Not everyone feels bullish, especially with a meme coin but if it’s a DOGE then you are betting on one of the most robust digital tokens around. With a bullish reversal, people should definitely get ready for DOGE to soar.

Featured image from Coingape, chart from TradingView.com

Christian Encila

They say journalists never truly clock out. But for Christian, that's not just a metaphor, it's a lifestyle. By day, he navigates the ever-shifting tides of the cryptocurrency market, wielding words like a seasoned editor and crafting articles that decipher the jargon for the masses. When the PC goes on hibernate mode, however, his pursuits take a more mechanical (and sometimes philosophical) turn.

Christian's journey with the written word began long before the age of Bitcoin. In the hallowed halls of academia, he honed his craft as a feature writer for his college paper. This early love for storytelling paved the way for a successful stint as an editor at a data engineering firm, where his first-month essay win funded a months-long supply of doggie and kitty treats – a testament to his dedication to his furry companions (more on that later).

Christian then roamed the world of journalism, working at newspapers in Canada and even South Korea. He finally settled down at a local news giant in his hometown in the Philippines for a decade, becoming a total news junkie. But then, something new caught his eye: cryptocurrency. It was like a treasure hunt mixed with storytelling - right up his alley!

So, he landed a killer gig at NewsBTC, where he's one of the go-to guys for all things crypto. He breaks down this confusing stuff into bite-sized pieces, making it easy for anyone to understand (he salutes his management team for teaching him this skill).

Think Christian's all work and no play? Not a chance! When he's not at his computer, you'll find him indulging his passion for motorbikes. A true gearhead, Christian loves tinkering with his bike and savoring the joy of the open road on his 320-cc Yamaha R3. Once a speed demon who hit 120mph (a feat he vowed never to repeat), he now prefers leisurely rides along the coast, enjoying the wind in his thinning hair.

Speaking of chill, Christian's got a crew of furry friends waiting for him at home. Two cats and a dog. He swears cats are way smarter than dogs (sorry, Grizzly), but he adores them all anyway. Apparently, watching his pets just chillin’ helps him analyze and write meticulously formatted articles even better.

Here's the thing about this guy: He works a lot, but he keeps himself fueled by enough coffee to make it through the day - and some seriously delicious (Filipino) food. He says a delectable meal is the secret ingredient to a killer article. And after a long day of crypto crusading, he unwinds with some rum (mixed with milk) while watching slapstick movies.

Looking ahead, Christian sees a bright future with NewsBTC. He says he sees himself privileged to be part of an awesome organization, sharing his expertise and passion with a community he values, and fellow editors - and bosses - he deeply respects.

So, the next time you tread into the world of cryptocurrency, remember the man behind the words – the crypto crusader, the grease monkey, and the feline philosopher, all rolled into one.

Disclaimer: The information found on NewsBTC is for educational purposes only. It does not represent the opinions of NewsBTC on whether to buy, sell or hold any investments and naturally investing carries risks. You are advised to conduct your own research before making any investment decisions. Use information provided on this website entirely at your own risk.